LITH:CC - Lithium Chile Announces Chengxin Lithium Has Exercised Their Warrants for Net Proceeds of $3642862 as Part of Their Strategy to Increase its Total Shareholding to 19.86%
(TheNewswire)
L ithium C hile A lso A nnou n ces the C losing of its J oint V enture A greement with M onumental M inerals
CALGARY, ALBERTA – TheNewswire- April 21, 2022 – Lithium Chile Inc.(“ Lithium Chile ” or the “ Company ”) (OTC:LTMCF)(TSXV:LITH) is pleased to announce that it hasreceived $3,642,862 net proceeds from Chengxin Lithium Group(“ Chengxin ”) as part of their strategy to increase ownership inLithium Chile to a total of 19.86%. The funds received from warrantsexercised at $0.85 will be added to the Company’s working capital tobring the total current cash balance to $15,633,086. The additionalbalance of $27,911,000 in connection to the private placement recentlyannounced, has already been received from Chengxin and is currently intrust until the private placement officially closes. The capital willbe used to advance the Company’s Arizaro project in Argentina aswell as the Company’s priority projects in Chile.
Steve Cochrane, President comments “I am extremelypleased to have Chengxin as our partner; they are a well-respectedpresence in the Lithium space. The additional capital raised will aidin the development and growth of our Lithium projects. Chengxin’sability to move quickly combined with their strong capital positionwill allow Lithium Chile to not only accelerate their existingprojects but also gives the financial strength to look at otheropportunities.”
From left to Right:Chengxin Lithium Group (Benjamin Huang, Bobi Luo, Ye Fu Liang) LithiumChile Inc. (Jose de Castro Alem, Michelle DeCecco, Steven Cochrane) onthe Salar de Arizaro Project, Argentina.
Lithium Chile is also please to announce that furtherto its March 31, 2022 news release, the TSX Venture Exchange (the“ Exchange ”) has approved the Company’s option agreement datedMarch 30, 2022 (the “ OptionAgreement ”) with Monumental Minerals(“ Monumental ”) (TSX-V: MNRL; FSE: BE5). TheOption Agreement allows Monumental to acquire up to 75% of the5200-hectare Salar De Laguna Blanca project (the “ Laguna Project ”)located near the town of San Pedro de Atacama, Chile.
In order to exercise the option to acquire a 75%interest in the Laguna Project, Monumental must issue 3,401,874 commonshares to Lithium Chile (the “ Payment Shares ”) within thirty (30) days ofthe Acceptance Date, make certain staged cash payments to LithiumChile and incur exploration expenditures on the Laguna Project asfollows:
(a) Make cash payments of an aggregate ofCad$1,500,000 according to the following schedule:
(i) $200,000 within thirty (30) days offinal Exchange approval of this transaction (the “AcceptanceDate”);
(ii) $250,000 on or before the eighteen (18)month anniversary of the Acceptance Date;
(iii) $300,000 on or before the secondanniversary of the Acceptance Date; and
(iv) $750,000 on or before the thirdanniversary of the Acceptance Date.
(b) Incur minimum expenditures on the LagunaProject of not less than an aggregate of Cad$1,500,000 according tothe following schedule:
(v) $200,000 on or before the firstanniversary of the Acceptance Date;
(vi) $500,000 on or before the secondanniversary of the Acceptance Date; and
(vii) $800,000 on or before the thirdanniversary of the Acceptance Date.
Steve Cochrane, President & CEO comments, “We areextremely pleased to have this joint venture with Monumental on ourLaguna Blanca prospect approved. This agreement will allow LithiumChile to move a number of priority projects forward simultaneously.Monumental’s prior lithium experience in Argentina will be aninvaluable asset to Lithium Chile”
About Lithium Chile
Lithium Chile is advancing a lithium property portfolioconsisting of 69,200 hectares covering sections of 10 salars and twolaguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns 5 properties, totaling 20,429hectares, that are prospective for gold, silver and copper.Exploration efforts are continuing on Lithium Chile’s Carmonagold/silver/copper property which lies in the heart of the Chileanmega porphyry gold/ silver/copper belt.
Lithium Chile’s common shares are listed on the TSX-Vunder the symbol “ LITH ” and on the OTCBB under the symbol“ LTMCF ”.
To find out more about Lithium Chile Inc., pleasecontact Steven Cochrane, President and CEO via email: steve@lithiumchile.ca oralternately, Josede Castro Alem , Argentina Manager via email jdecastroalem@gmail.com or MichelleDeCecco, Vice President of Corporate Development via email michelle@lithiumchile.ca or at403-390-9095.
NEITHER THE TSXVENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM ISDEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTSRESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward Looking Statements
This news release may contain certain forward-lookinginformation and forward-looking statements within the meaning ofapplicable securities legislation (collectively "forward-lookingstatements"). Generally, forward-looking statements can beidentified by the use of forward-looking terminology such as"expected", "anticipated", "aims to","plans to" or "intends to" or variations of suchwords and phrases or statements that certain actions, events orresults "will" occur. In particular, this news releasecontains forward-looking statements relating to,the entering into of definitive agreements and regulatory bodyapprovals. Such forward-looking statements are based on variousassumptions and factors that may prove to be incorrect, including, butnot limited to, factors and assumptions with respect to: the generalstability of the economic and political environment in which theCompany operates; the timely receipt of required regulatory approvals;the ability of the Company to obtain future financing on acceptableterms; currency, exchange and interest rates; operating costs; thesuccess the Company will have in exploring its prospects and theresults from such prospects. You are cautioned that the foregoing listof material factors and assumptions is not exhaustive. Although theCompany believes that the assumptions and factors on which suchforward-looking statements are based are reasonable, undue relianceshould not be placed on the forward-looking statements because theCompany can give no assurance that they will prove to be correct orthat any of the events anticipated by such forward-looking statementswill transpire or occur, or if any of them do so, what benefits theCompany will derive there from. Actual results could differ materiallyfrom those currently anticipated due to a number of factors and risksincluding, but not limited to: fluctuations in market conditions,including securities markets; economic factors; the risk that the newlithium or cesium exploration tender processes does not yield theanticipated benefits to the Company, including the risk that theCompany will not receive the approvals necessary and the impact ofgeneral economic conditions and the COVID-19 pandemic. The Companydoes not undertake to update any forward-looking statements herein,except as required by applicable securities laws. All forward-lookingstatements contained in this news release are expressly qualified bythis cautionary statement.
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